

2026 is just around the corner and that means more small businesses will soon be required to follow the state’s paid family and medical leave job protections for their employees.
The Legislature expanded the requirements for which businesses are subject to job protections during the 2025 session. That means any business with 25 or more employees will be required to restore employees to their prior roles, compensation and working conditions if they return from paid leave on or after Jan. 1, 2026, and had started working at least 180 days before taking paid leave.
Employers will also have to maintain those workers’ health insurance as if they were working and notify them of when job protections will expire.
The state also announced that premium rate for the Paid Family and Medical Leave program will increase to 1.13% of each employee’s gross wages, with employers
paying 28.57% of the total premium and employees paying 71.43%. For comparison, the current premium rate is 0.92% with employers paying 28.48% of the total premium and employees paying 71.52%.
Businesses classified by the state as having fewer than 50 employees will not have to pay the employer portion of the premium. However, those employers must still collect the employee premium or pay employees’ premiums on their behalf.
More information on how smaller businesses could be affected by the new law are expected in coming months, including how to manage job protections when an employee is using benefits connected to the Family Medical Leave Act and small business assistance grants that can help with costs related to these law changes.
